Decomposition of solutions and the Shapley value

André Casajus and Frank Huettner

Games and Economic Behavior, 2018, vol. 108, issue C, 37-48

Abstract: We suggest foundations for the Shapley value and for the naïve solution, which assigns to any player the difference between the worth of the grand coalition and its worth after this player left the game. To this end, we introduce the decomposition of solutions for cooperative games with transferable utility. A decomposer of a solution is another solution that splits the former into a direct part and an indirect part. While the direct part (the decomposer) measures a player's contribution in a game as such, the indirect part indicates how she affects the other players' direct contributions by leaving the game. The Shapley value turns out to be unique decomposable decomposer of the naïve solution.

Keywords: Decomposition; Shapley value; Potential; Consistency; Higher-order contributions; Balanced contributions (search for similar items in EconPapers)
JEL-codes: C71 D60 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:108:y:2018:i:c:p:37-48

DOI: 10.1016/j.geb.2017.05.001

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